CRISIS ENDS

New Zealand Herald, Volume LXXV, Issue 22992, 21 March 1938, Page 9

CRISIS ENDS

POLISH THREAT LITHUANIA BOWS THE TEEMS ACCEPTED GOVERNMENT'S ACTION HE JO ICING IN WAESAW By Telegraph—Press Association —Copyright (Received March 20, 5.5 p.m.) LONDON, March 10 The Lithuanian Minister of Foreign Affairs visited the Polish Legation at Tallinn, the capital of Esthonia, and, it is understood, communicated Lithuania's acceptance of the Polish terms for settlement of the dispute between the latter two countries. It had earlier been stated officially from Warsaw that Lithuania must accept the Polish ultimatum in full; a conditional reply would be regarded as a rejection and "appropriate action" would follow.

In view of the international situation, says a message from Kovno, the capital of Lithuania, the Government felt compelled to accept the Polish proposals, the Lithuanian deputy-Prime Minister told Parliament. The Minister/of Communications, M. Stanisauskas, thanked the Great Powers for their representations, which unfortunately had been unsuccessful. Run on Banks Long queues formed up at the Kovno banks to withdraw deposits under fear of a crisis approaching, but when it became known that Lithuania had agreed to the Polish terms, general rejoicing replaced the previous uloom.

The President of Lithuania, M. Sinetona, summoned representatives of the Army, the Diet and political parties to discuss the position. There is immense satisfaction in Warsaw that the crisis has been averted. An exchange of Notes provides for the immediate appointment of the respective Ministers in the two capitals. Polish Naval Move A statement issued by the Foreign Office in Warsaw previous to Lithuania's acceptance of the demands drew attention to the unsatisfactory state of Polish-Lithuanian relations. For 20 years, it was stated. Lithuania had not conformed to the frontier recommendations or to the League's plan'to normalise relations.

A run began on the Post Ofiice Savings Bank in Warsaw, which paid out freely.

It is revealed from Warsaw that the Polish Navy yesterday moved in the direction of Meinel, Lithuania.

At Vilna Marshal Smigly-R.vdz, after inspecting troops on the frontier, told a mass meeting: "You can trust me and the army to see that Poland's interests are safeguarded." A Berlin Foreign Office spokesman described as "utter nonsense" reports that Germany would march into Memel if Poland marched into Lithuania.